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PP RUEHWEB

DE RUEHTV #1685/01 2101328
ZNR UUUUU ZZH
P 291328Z JUL 09
FM AMEMBASSY TEL AVIV
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UNCLAS TEL AVIV 001685 
 
STATE FOR NEA, NEA/IPA, NEA/PPD 
 
WHITE HOUSE FOR PRESS OFFICE, SIT ROOM 
NSC FOR NEA STAFF 
 
SECDEF WASHDC FOR USDP/ASD-PA/ASD-ISA 
HQ USAF FOR XOXX 
DA WASHDC FOR SASA 
JOINT STAFF WASHDC FOR PA 
CDR USCENTCOM MACDILL AFB FL FOR POLAD/USIA ADVISOR 
COMSOCEUR VAIHINGEN GE FOR PAO/POLAD 
COMSIXTHFLT FOR 019 
 
JERUSALEM ALSO ICD 
LONDON ALSO FOR HKANONA AND POL 
PARIS ALSO FOR POL 
ROME FOR MFO 
 
SIPDIS 
E.O. 12958: N/A 
TAGS: OPRC KMDR IS
 
SUBJECT: ISRAEL MEDIA REACTION 
 
-------------------------------- 
SUBJECTS COVERED IN THIS REPORT: 
-------------------------------- 
 
Mideast 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
The Jerusalem Post and other leading media reported that, following 
his meeting with PM Benjamin Netanyahu, U.S. Envoy for Middle East 
Peace Senator George Mitchell said there had been "good progress" at 
the meeting.  "We look forward to continuing our discussions to 
reach a point that we can all move forward to reach a comprehensive 
peace," he said.  Netanyahu said that the discussions had been "very 
important and productive" and that "we will continue our efforts to 
successfully advance toward peace between us and the Palestinians." 
He said the sides "were progressing."  (HaQaretz noted that 
Netanyahu and Mitchell Qdid not say how close they were to resolving 
the disagreement.Q)  Maariv quoted a senior figure in Netanyahu's 
close circle as saying yesterday with satisfaction: 'There will be 
no blowup with America.Q  HaQaretz quoted Netanyahu and Mitchell as 
saying that the two countries are nearing an understanding on 
settlement construction in the West Bank.  HaQaretz reported that 
the two agreed to meet again in Israel next month. 
 
The Jerusalem Post reported that Mitchell left his Israeli 
interlocutors with the impression yesterday that he would be able to 
extract some normalization gestures towards Israel from the Arab 
world within a month.  Although no agreement was announced regarding 
the U.S. demand for a settlement freeze, Israeli officials were 
quotes as saying that the sides were "getting close" to "finding 
that common ground to enable progress."  Israeli government sources 
were quoted as saying that Mitchell would come back to the region at 
some point in August.  The Jerusalem Post cited assessments in 
Jerusalem that negotiations with the Palestinians would begin only 
after the U.S. and Israel agreed on some kind of settlement 
construction freeze, and this freeze would be declared when the U.S. 
had commitments for some normalization gestures from the Arab world. 
 The Jerusalem Post reported that Israel has made clear that any 
type of settlement freeze would have to be met by reciprocal 
gestures from the Arab world, leading to speculation that the delay 
in reaching a compromise on the settlements up until now has stemmed 
in part from difficulties Mitchell has been having in getting any 
 
Arab states to commit to making goodwill gestures toward Israel at 
this time.   The Post cited White House confirmation that President 
Obama had sent letters to a handful of Arab and Gulf states within 
the last two months seeking confidence-building measures toward 
Israel.  Among the countries that received these letters were 
Bahrain, Egypt, Jordan, Saudi Arabia, and the United Arab Emirates. 
In addition, Obama sent a letter earlier this month to Morocco's 
King Mohamed VI asking him to "be a leader in bridging gaps between 
Israel and the Arab world."  Among the gestures that have reportedly 
been discussed are granting Israel overfly rights, the exchange of 
economic interest sections, and various cultural and educational 
exchanges.  Israel Radio cited the London-based Ash-Sharq Al-Awsat 
as saying that those countries expressed reservations about such 
gestures, saying they were premature. 
 
Israel Radio quoted a senior PA official as saying that Mitchell 
told PA President Mahmoud Abbas on Sunday that President Obama will 
present his peace initiative in two months. 
 
Israel Radio reported that U.S. National Security Advisor Gen. James 
Jones and members of his staff will discuss the Iranian nuclear 
program with their Israeli counterparts and visit Mossad facilities, 
among other institutions.  The radio reported that Jones met with DM 
Barak this morning.  Israel Radio quoted PM Netanyahu as saying last 
night at the National Defense College that radical Islam can be 
defeated by ideas of freedom, but that the danger -- which Netanyahu 
said was only being gradually understood in many countries -- lies 
in Muslim countries procuring nuclear weapons.  Media also quoted 
Netanyahu as saying at the college that Gazans have the power to 
overthrow the Hamas regime. 
 
HaQaretz quoted IDF Chief of Staff Lt. Gen. Gabi Ashkenazi as saying 
yesterday that police officers, not soldiers, should evacuate 
outposts.  The HaQaretz Web site reported that last night, police 
dismantled the West Bank outpost of Mitzpe Avihai near Hebron. 
 
HaQaretz and other media quoted the Lebanese news agency as saying 
yesterday that the Israeli and Lebanese armies have deployed on both 
sides of the border in the Har Dov area, also known as Sheba Farms. 
The media reported that, amid the reports of tension along Israel's 
northern border, DM Ehud Barak and Chief of Staff Ashkenazi tried to 
calm the atmosphere. In a separate development, HaQaretz reported 
that Israel is considering negotiating with Lebanon by 
reestablishing one of the 1949 armistice commissions that ended 
Israel's War of Independence.  Israeli officials have been 
discussing the matter with the U.S., UN, and EU. 
 
Maariv reported that the lifting of U.S. economic sanctions on Syria 
is meant to facilitate Syrian aid to U.S. efforts in Iraq.  The 
Jerusalem PostQs social column reported that former U.S. Ambassador 
to Israel Dan Kurtzer was recently mentioned as one of the people 
being considered to serve as AmericaQs ambassador to Syria. 
 
HaQaretz reported that the temporary route of the security fence 
places the West Bank Palestinian village of Beit Iksa on the Israeli 
side of the security barrier.  The route is based on an Defense 
Ministry decision that runs counter to plans approved by the cabinet 
of then PM Ehud Olmert.  As a result, residents of the village, 
which is just north of Jerusalem, can enter Israeli territory 
without any significant restriction.  The arrangement is also 
contrary to earlier recommendations within the Defense Ministry. 
 
Israel Hayom reported that the police will also recommend the 
indictment of FM Avigdor Lieberman on a bribery charge. 
 
The media (banner in Yediot) cited controversy surrounding an 
impending bill introducing biometric data in Israeli citizensQ ID 
cards and passports.  The safety of records is questioned. 
 
In its lead story, the Shas weekly Yom LeQYom questions the 
necessity of recent FBI arrests of Jewish dignitaries. 
 
Over the past few days the media reported that yesterday Daniel 
Boyd, an American convert QIslam, his two sons, and five others 
were arrested in North Carolina and charged on Monday with 
supporting violent jihad movements in countries including Israel, 
Jordan, Kosovo, and Pakistan.  They allegedly sought to carry out a 
terrorist attack in Tel Aviv. 
 
The Jerusalem Post reported that the IDF boycotted a Rabbis for 
Human Rights conference after discovering that a petition would be 
signed during the conference to establish an independent inquiry 
committee to investigate war crimes charges.  Yesterday HaQaretz 
reported that, following protests by Israel, the Netherlands will 
reevaluate its funding of Breaking the Silence, an organization that 
alleged that Israeli troops used Palestinians as human shields in 
Gaza.  Israel Radio cited the British Embassy as saying that, as 
Breaking the Silence is a lawful group, it does not find fault with 
funding it. 
Israel Hayom reported that yesterday the Federal Reserve Bank 
publicized demands made in an agreement with Bank Hapoalim that the 
largest Israeli bank correct faults in the domain of 
money-laundering at its Miami branch.  The newspaper quoted 
HapoalimQs response that the agreement is Qsimilar to agreements 
signed by other banks in the U.S. with the U.S. regulator. 
 
All media reported that yesterday the Jerusalem District Court ruled 
that two Israeli crime kingpins, the Abergil brothers, can be 
extradited to the U.S.  Their lawyers will appeal to the High Court 
of Justice.  Yediot reported that U.S. authorities revoked the visa 
that had been granted to their associate, Moti Hassin, who planned 
to assist the Abergils from inside the U.S. 
 
The media (banner in Maariv) reported that yesterday the U.S. dollar 
reached the low rate of 3.77 shekels (a 5% decline in two weeks) and 
rose slightly this morning. 
 
The media reported on events related to Tisha BeQAv, the fast day 
commemorating the fall of the two Jewish Temples, which starts at 
sunset today. 
 
 
 
 
 
 
 
 
-------- 
Mideast: 
-------- 
 
Block Quotes: 
------------- 
 
¶I.  "Yes, Indeed, the Settlements" 
 
Former Meretz Knesset Member Zvia Greenfield wrote in the 
independent, left-leaning HaQaretz (7/29): QIn the inevitable clash 
with the United States to which the Prime Minister and his cabinet 
are leading us, the result has to be clear in advance: It's the 
Titanic that will sink, not the iceberg.  Nevertheless, some 
consolation can be found in the current situation: Obama, after all, 
is being kind to us.  Of all the means at his disposal to push 
E 
Israel to the negotiating table, the only one that cannot really 
hurt it in any way is the discussion surrounding construction in the 
settlements.  And would it be better for us if the United States 
decided to harm Israel's security interests?  Is it preferable that 
the profound relations of friendship and trust between the two 
countries be damaged?.... The United States, with justification and 
wisely, is not giving in to Israel on [the settlement] issue, and it 
appears the Obama administration understands correctly that the real 
and perhaps only test of Netanyahu's seriousness regarding the 
two-state plan will be his willingness to end the expansion of the 
settlements.  If Netanyahu, despite all his speeches, is not able to 
fulfill this simple requirement -- which as noted does no real 
damage to Israel -- it is a sign that it is not in our interest to 
keep discussing a Palestinian state with him.  And it really isn't 
in our interest for Obama to reach this conclusion. 
 
II.  "Restraint in the North" 
 
HaQaretz editorialized (7/29): QThe current government must learn 
from the mistakes of its predecessor and not be drawn into 
provocations in the north.  However anger-inducing Nasrallah's 
remarks and provocations such as the mass march to Har Dov [the 
Sheba Farms] are, Israel has nothing to gain from another round of 
violence against Hizbullah.  It is better to maintain the uneasy 
peace along the border, which is grounded in mutual deterrence, and 
not undermine it.... Prime Minister Benjamin Netanyahu's government 
must focus on its key goals -- improving relations with the United 
States, renewing the peace process and stopping the Iranian nuclear 
threat.  It must not divert its intention to secondary arenas. 
Israel must act in coordination with the U.S. administration to calm 
the situation and improve security arrangements along the Lebanese 
border to ensure that the unneeded adventure of the summer of 2006 
does not happen again. 
 
III.  "A President Devoid of a Past" 
 
Rabbi Moshe Shafir wrote in the Shas Party weekly Yom LeQYom (7/29): 
QIt is no secret that increasingly loud squeaks are being heard 
between Israel and the U.S.  Even optimists among us will find hard 
to ignore these unpleasant sounds.... Only recently did Mr. Barack 
Obama enter his position: The economic and diplomatic condition of 
his nation was very bad.  He noticed that his predecessor 
unsuccessfully tried with all his might to cope with the forces of 
evil in the world.  In such circumstances, Mr. Obama decided to 
forgo small changes and undertake a revolution: QWeQll embrace the 
bad ones and beat up the good ones -- it cannot get any worse.Q  It 
is no secret that IsraelQs leaders hold a completely different view 
of the predicament and its solution -- at least as regards this 
region, because in the Middle East one understands that things can 
definitely get worse.  ThatQs a problem.  Despite all this, we must 
remember and recall that we depend on the mighty United States, 
which takes care of us secretly and overtly. 
 
CUNNINGHAM